Two largest Banks of Greece are going to unite

15.10.2012

The other day the first-rate bank of Greece National Bank of Greece (NBG) announced its intention to purchase the safety stock of Greek bank Eurobank. Share capital of the second largest Bank in Greece, was valued at 647 million Euro, and each action individually - at 1,17 Euro.

The result of the transaction must be the creation of a more stable banking group, which can have a positive impact on the Greek economy, restoring the credibility of the Greek financial system and significantly improving the quality of customer service

In addition, such a large Bank will be able to attract additional private capital, thereby preventing the nationalization.

On the basis:

http://www.eurobank.gr/Uploads/pdf/05%2010%2012%20Announcement%20on%20NBG.pdf

Expert’s opinion

Resuscitation of a dead man. Just so you can call the actions in Greece.

The faster the bankrupt Bank will be liquidated and its property will be sold, the faster this crisis will pass. And that’s all, as after the fire, will start a new cycle of life.

Now, the bankrupt Bank attaches to itself a viable Bank. Thus, instead of competition (meanwhile, only it leads to the increase of the quality of work, including the Bank's liquidity), we obtain the concentration and monopolization of the market in the hands of one of the banking group, that is based on, as I have already mentioned, the bankrupt Bank.

As a result, soon the depositors of the new Bank will not be able to get their money from the newly formed «monster».

Yaroslav Lomakin ( Managing partner Company Honest & Bright)